A Mini Mortgage Library To Help You Understand Mortgage Terms
If you're looking to buy a house, you'll want to have access to a good mortgage library. Educating yourself on the do's and don'ts of buying a home is important. Everyone is trying to get the best deal possible and some of the terms can be confusing.
1) Broker: Broker is the first term in a mortgage glossary to understand. A broker is the person who connects you with a lending institution like a bank to put together a mortgage. In real estate terms, an agent will work for a broker. A few other terms revolve around what's going on with the property itself.
2) Mortgage: This includes the mortgage, which is the legal document that ties a property to a lender.
3) Deed: Then there is a deed, which is the legal document of title for a property.
When looking at a mortgage library, there are some other terms to be aware of when deciding what kind of loan to get, as well.
4) Escrow: An escrow is a money deposit that will be delivered to the seller after a transaction has been closed.
5) Amortization: This refers to how the loan payments are divided between the amount being paid on the principal loan amount and how much is being paid on the interest.
The part of buying a property also involves familiarizing yourself with some of the words in the mortgage glossary.
6) Appraisal: An appraiser will examine the home and the property and determine a value for the property based on multiple factors including the values of other homes in the area.
7) APR: When obtaining a loan, the APR or annual percentage rate is important. This is the percentage that will be paid to the loan, which can have a significant impact on the total cost of the mortgage payment each month. You want to try and get the lowest APR possible, and this is where your broker may be able to assist you.
8) Closing: This is the part of the mortgage process when all the documents have been signed, money has changed hands and everything is completed so the buyer can take possession.
In the event that your mortgage doesn't work out as planned, the final two mortgage terms you need to be familiar with is refinance and bankruptcy.
9) Refinance: You may be able to refinance by creating an entirely new loan of the same property at a lower interest rate. This may involve paying new closing costs, however, it can help with debt and lower monthly obligations.
10) Bankruptcy: In a mortgage library, bankruptcy is the worst term because it means that a person is unable to make payments and files a motion with the court to be absolved of financial obligations.
These are the most basic terms to know when seeking to secure a loan. There are many other important terms, and finding a good source for mortgage information will provide the confidence and knowledge you need to proceed.
About the Author
A Seattle mortgage library is the perfect resource to help you understand the terms used in lending. Wilhem Kearnes recommends the library provided by Sammamish Mortgage if you are looking for information regarding Seattle home loans. Visit http://www.sammamishmortgage.com/Library.html to see more mortgage and lending terms.
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